FTC Telemarketing Sales Rule business-to-business exemption explained

Last updated 2026-07-09

What is the FTC Telemarketing Sales Rule and who does it cover?

The Telemarketing Sales Rule (TSR) is a federal regulation the Federal Trade Commission issued under the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101-6108. ^[1] The FTC finalized the original rule in 1995 and has amended it several times since, most recently with updates in 2023 and 2024 covering credit card laundering and robocall provisions. ^[2]

The TSR governs outbound telephone calls and certain inbound calls made for commercial purposes. It sets disclosure rules, bans specific deceptive or abusive practices, and restricts calling numbers on the National Do Not Call Registry. Violations cost up to $51,744 per violation as of 2024, a figure the FTC adjusts for inflation. ^[3]

The rule applies to "telemarketing," which the TSR defines as a plan, program, or campaign to induce the purchase of goods or services or a charitable contribution, conducted by telephone. ^[1] That definition is where the B2B question lives. If your calls are genuinely between businesses and never touch a consumer end-buyer, there's a strong argument you fall outside the rule entirely. But "strong argument" is not the same as "guaranteed safe harbor."

What exactly is the B2B exemption in the Telemarketing Sales Rule?

Section 310.6(b)(7) of the TSR exempts telephone calls between a telemarketer and any business from most of the rule's requirements. ^[4] The reasoning is that the rule was built to protect consumers, not commercial buyers who are presumed to have their own bargaining power and legal resources.

The exemption covers these provisions when the call is genuinely business-to-business:

• The required oral disclosures at the start of a call
• The prohibition on calling numbers on the National Do Not Call Registry
• The call time restrictions (8 a.m. to 9 p.m. local time)
• The call abandonment rules
• The requirement to transmit caller ID

So if you're selling SaaS to IT managers, calling procurement officers about office supplies, or pitching an accounting firm on payroll software, and the person you reach is acting in a business capacity, the TSR's consumer-protection machinery does not touch that call. ^[4]

The exemption does not wipe out everything, though. The bans on credit card laundering, on assisting-and-facilitating violations, and on outright fraud stay live no matter who's on the other end. You cannot defraud a business and then wave the B2B exemption as cover.

Does the National DNC Registry apply to business phone numbers?

No. The National Do Not Call Registry is a consumer tool. Numbers on the DNC Registry belong to individual consumers who opted out of telemarketing. ^[5] The Registry's restrictions do not reach calls to businesses.

This is the single most practical point for B2B teams. If you're calling a direct-dial business line listed under a company name, and the call genuinely seeks to transact with that entity, you don't need to scrub against the National do not call list before dialing. ^[4]

Here's the trap. Plenty of business professionals use a personal cell as their main work number, and that cell is probably registered on the DNC Registry in the person's own name. Call it, and if the person treats the contact as a consumer rather than a business matter, your B2B footing can slip out from under you. The FTC looks at the nature of the transaction you're soliciting more than the type of phone you dialed.

One more line to be clear about. If you sell to businesses but your revenue ultimately rides on consumers (say, selling leads to mortgage lenders who then call homeowners), you're probably not in B2B territory for TSR purposes, even when every human you dial holds a business card.

Which calls lose the B2B exemption even if you're selling to a business?

This is where teams get burned. The exemption is fact-specific, not categorical. Four situations reliably strip it away.

1. The business will resell or market what you're selling to consumers. Sell a telemarketing service to a car dealership so the dealership can call homeowners, and the FTC looks straight through to the downstream consumer impact. Courts and the FTC have held that sellers who assist and facilitate consumer telemarketing fraud can't hide behind B2B status. ^[2]

2. The call reaches a consumer at a business number. A home-based business owner who registered their cell on the DNC Registry is still a consumer for calls that have nothing to do with running the business. Context controls.

3. The deal involves a consumer co-signer or household buyer. Selling office equipment under a personal guarantee? The personal guarantee side of that transaction can pull the call into consumer territory.

4. The "business" isn't a real separate entity. The TSR doesn't define "business" in the exemption provision. The FTC's enforcement pattern suggests sole proprietors acting in a personal capacity, and micro-businesses that blur the consumer/commercial line, get treated as consumers. ^[2]

The honest answer is that the edges here are not perfectly bright. Call mid-market companies with a clean B2B offer and no consumer angle, and you're on solid ground. Get closer to small businesses, personal cell phones, and consumer-adjacent products, and you need to think harder about every list.

Does the B2B exemption cover robocalls and prerecorded messages?

Yes under the TSR, but the TCPA is a different animal, and this is where a lot of teams trip.

The TSR's B2B exemption in §310.6(b)(7) does extend to prerecorded message calls to businesses. ^[4] Where the TSR's prerecorded-call rules would otherwise apply, the exemption can knock them out.

The TSR isn't the only law in the room. The TCPA, 47 U.S.C. § 227, is run by the FCC, not the FTC, and its robocall rules work differently. ^[6] The TCPA bars using an automatic telephone dialing system or a prerecorded voice to call a cell phone without prior express consent, and there's no blanket B2B carve-out in the statute. The FCC has recognized some implicit B2B consent ideas in practice, but nothing formal that mirrors what the TSR gives you.

So robocalling a business landline is largely fine under both regimes: the TSR because of the B2B exemption, the TCPA because landlines aren't covered by the cell-phone consent rule. Robocalling a business owner's personal cell is another story. The TSR exemption may apply, but the moment a cell phone is the target, the TCPA's consent requirement doesn't vanish just because you're selling B2B.

Using a dialer with prerecorded messages against cell numbers? Do not lean on B2B status alone. Get express written consent or put live agents on the phone.

How does the B2B exemption interact with state do-not-call laws?

Federal exemptions don't automatically carry over to state law. That's a real operational headache.

Many states run their own mini-TSR or DNC laws, and some carry no B2B exemption at all, or define it differently. Florida, Indiana, and Pennsylvania all maintain state DNC registries with their own coverage rules. ^[7]

Florida's Telephone Solicitation Act reaches calls made by a telephonic seller, and its exemptions run narrower than the federal TSR's. ^[7] Indiana and Pennsylvania keep similar state-level frameworks. Call into those states and the Florida do not call list, Indiana do not call list, and do not call list PA rules can apply even where the federal TSR would not.

The safe approach for multi-state B2B callers is a state-by-state compliance map. A handful of states want scrubbing even for business numbers. Nobody tracks this well in one place, and the state AG offices are the authoritative sources.

Watch one more angle. State consumer protection statutes sometimes reach small business transactions under an unfair-and-deceptive-acts theory, separate from their DNC rules. So even a clean B2B call can produce state-law liability if the pitch is deceptive.

What are the actual TSR rules that do still apply to B2B calls?

Even with the exemption in place, several TSR provisions stay live and enforceable against business-to-business telemarketers. The table below shows what the exemption knocks out and what survives.

TSR Provision	Does B2B Exemption Apply?	Notes
DNC Registry scrubbing	Yes, exempted	No obligation to check national registry
Call time restrictions (8am-9pm)	Yes, exempted	Calling at 3am is still bad practice
Required oral disclosures	Yes, exempted	No mandatory opening script under TSR
Caller ID transmission	Yes, exempted	Spoofing is separately illegal under Truth in Caller ID Act
Abandoned call limits	Yes, exempted	No 3% cap applies
Credit card laundering prohibition	No, still applies	Applies to all calls
Assist-and-facilitate fraud	No, still applies	Applies to all calls
General fraud/deception prohibition	No, still applies	Applies to all calls

The fraud prohibitions matter more than most B2B teams realize. The FTC has brought cases against B2B telemarketers for deceptive pitches even where the consumer-protection provisions were properly exempted. ^[8] A misleading pitch to a business buyer is still a misleading pitch.

One more note. The TSR's record-keeping rule under §310.5 applies to telemarketers generally. Whether it binds exempt B2B calls specifically is less clear, but keeping records of consent and calling lists is always smart.

How does the FTC actually enforce the B2B exemption in practice?

The FTC does not go hunting through clean B2B sales operations. Its enforcement in this area clusters around two kinds of bad actors: companies claiming B2B status while actually selling to consumers, and companies using B2B framing to cover a mixed B2C/B2B operation. ^[2]

The pattern the FTC cares about most is using a business entity as a legal buffer for what is really consumer telemarketing. The commission has pursued medical alert and lead-generation operations on exactly that theory, arguing the ultimate transaction was consumer-facing no matter how the sales chain was structured. If your buffer collapses under the facts, the B2B label collapses with it.

Enforcement usually starts with consumer complaints filed through the do not call list report system at the FTC. Businesses don't file DNC complaints the way consumers do, so a true B2B operation rarely shows up on that complaint-driven radar. That is not the same as being invisible. If your industry draws regulatory attention for other reasons, the FTC may study your calling practices as part of a wider look.

Civil penalties for TSR violations reach $51,744 per violation as of 2024, and the FTC counts "per violation" as per call in most actions. ^[3] A campaign of any real size turns that into an existential number fast.

What should a B2B sales team do to stay compliant under the TSR?

The compliance posture for a true B2B outbound team is simpler than most people fear, but it forces you to think through your offer and your data honestly.

Step 1: Confirm you're genuinely B2B. Ask two questions. Does the person you're calling make the purchase decision for a business entity? Is the product used by that business rather than resold to or used by consumers? Yes to both puts you in solid B2B territory.

Step 2: Audit your contact data. If your lists carry personal cell phones, numbers derived from home addresses, or numbers from consumer data brokers, run a DNC scrub anyway. The cost is low and the risk of a mixed list is real. Here's how to get the do not call list for scrubbing consumer numbers out of mixed datasets.

Step 3: Build state-by-state rules. Identify the states you call into most and read their state DNC and telemarketing statutes directly. Florida, Indiana, Pennsylvania, and a few others carry distinct B2B rules.

Step 4: Train agents on the fraud prohibitions. The TSR's deception rules apply to your B2B calls. Script reviews and agent training earn their keep here.

Step 5: Document your B2B classification. If you ever have to defend your exempt status, you want records showing how you decided each contact was a business buyer. CRM notes, list sourcing documents, and call logs do that work.

LeadCompliant's compliance kit includes a TSR B2B exemption checklist and a state-by-state calling rules reference a small team can apply without a law firm on retainer. That's the kind of tool that pays for itself the first time a demand letter lands.

Does the B2B exemption apply to text message campaigns?

The TSR's B2B exemption was written for telephone calls. Text messages sent for commercial purposes are a separate question with a messier answer.

The TSR itself doesn't cover SMS the way it covers voice, though the FTC has signaled interest in updating its rules for text marketing. ^[2] The TCPA absolutely covers texts. The FCC treats a text to a cell phone as a call under 47 U.S.C. § 227(b)(1)(A). ^[6] And the TCPA carries no B2B exemption comparable to the TSR's §310.6(b)(7).

For B2B SMS, the operative rule is blunt. Text a cell phone with an auto-dialer or in bulk and you need prior express written consent under the TCPA, whether or not the recipient is a business person. The nature of the deal does not erase the cell-phone consent requirement.

Smart B2B teams handle this by getting opt-in consent at the point of lead capture (a web form, a trade show badge scan) and keeping detailed consent records. That's the right move. Assuming B2B status alone protects your SMS program is a mistake that has produced real litigation.

What is the difference between the TSR B2B exemption and an established business relationship?

These are two separate ideas people constantly conflate.

The TSR's B2B exemption (§310.6(b)(7)) turns on who you're calling: a business rather than a consumer. It needs no prior relationship. You can cold-call a business prospect and still have the exemption apply.

An established business relationship (EBR) is a different concept that lives in the TSR's consumer-side rules. An EBR exists when a consumer has made a purchase, rental, or financial transaction with you in the prior 18 months, or has inquired about your products in the prior 3 months. ^[1] The EBR lets callers contact consumers who are on the DNC Registry.

For a B2B team, the EBR matters if any call might get reclassified as a consumer call. Lose the B2B argument for a specific call, and an EBR with that person in their consumer capacity might still shield you from a DNC violation.

The ftc do not call list rules for consumers and the B2B exemption run on parallel tracks. Knowing both gives you two layers of cover when the facts get murky.

Frequently asked questions

Does the TSR B2B exemption mean I never have to scrub a DNC list for business calls?

For the National Do Not Call Registry, yes, the B2B exemption removes the scrubbing obligation under the TSR. But state DNC laws may still require scrubbing in certain states, and if your list includes personal cell phones registered on the national registry, you carry TCPA risk separately. Run a scrub on any list with consumer-linked numbers, whatever your TSR position.

Can I call a small business owner on their personal cell phone under the B2B exemption?

Possibly, but it's the riskiest scenario in this whole area. If the number is on the National DNC Registry and you're pitching something with any consumer dimension, you may not have clean B2B cover. The FTC weighs the nature of the transaction and the capacity the person is acting in. When in doubt, get express consent for personal cell numbers even in a B2B context.

What is the penalty for violating the TSR if I wrongly claim the B2B exemption?

Civil penalties reach $51,744 per violation as of 2024, adjusted for inflation by the FTC. The FTC typically treats each call as a separate violation. A campaign of even a few hundred calls to DNC-registered numbers, where B2B status later fails, can produce seven-figure exposure. State attorneys general can also bring parallel actions under state law.

Does the B2B exemption cover inbound calls that I return or route outbound?

The TSR exempts inbound calls (§310.6(b)(1)), but if you take an inbound inquiry and then initiate an outbound follow-up, that outbound call is subject to the TSR's normal rules. The B2B exemption can still apply to it if the recipient is a business, but you cannot claim the inbound exemption for a call you placed.

Are there any industries where the B2B exemption is less reliable?

Yes. Financial services, healthcare, and real estate draw more scrutiny because the business/consumer line is blurry. A mortgage broker calling a real estate investor makes an arguably B2B call, but the FTC and CFPB watch those industries closely. Lead generation is another area where claimed B2B status often fails, because the downstream buyer is always a consumer.

Does the FTC TSR B2B exemption cover non-profit fundraising calls to businesses?

Calls made for a bona fide charitable organization are addressed separately in the TSR (§310.6(b)(1) and related provisions). The B2B exemption and the charitable solicitation rules work differently. If a non-profit calls a business to solicit a corporate donation, both may overlap, but charitable solicitations carry their own disclosure requirements you should check on their own terms.

How does the B2B exemption apply to ringless voicemail drops to business numbers?

Ringless voicemail is a contested area. The FCC has treated RVMs as calls under the TCPA, which means TCPA consent rules apply for cell phones. The TSR B2B exemption may cover RVM to business landlines, but for cell-delivered RVMs, TCPA consent is the bigger concern regardless of B2B status. This technology carries above-average legal risk either way.

What documentation should I keep to prove my calls qualify for the B2B exemption?

Keep records of how you sourced each contact, the business name and entity type tied to each number, the offer you made, and notes confirming the person was acting in a business capacity. CRM records, list purchase agreements, and time-stamped call logs all help. The FTC's record-keeping rule under §310.5 applies broadly, so a two-year retention policy is a reasonable baseline.

Can my competitor sue me under the TSR for calling their business customers?

The TSR does not create a private right of action for businesses the way the TCPA does for consumers. The FTC and state AGs are the primary enforcers. But if your calls violate state law or amount to unfair business practices, a competitor or a recipient business could raise state-law tort or deceptive practice claims. The TCPA does allow private suits, and those can come from business owners whose personal cell phones you dialed.

Is there a formal FTC opinion letter or guidance I can cite to confirm the B2B exemption?

The exemption is in the regulation itself at 16 C.F.R. § 310.6(b)(7), which is the most authoritative citation you have. The FTC's compliance guide for the TSR explains the exemption in plain language on the FTC website. There's no FTC opinion letter process for individual companies the way the IRS has private letter rulings. The regulation text plus the compliance guide is what you cite.

Does the TSR B2B exemption apply if I am calling on behalf of a client as an outsourced call center?

If you're a third-party caller working for a business that sells to other businesses, you can claim the B2B exemption on those calls. But the TSR holds both the telemarketer and the seller jointly liable under the assist-and-facilitate provisions. If the underlying campaign turns out to be consumer-facing or deceptive, your client's B2B framing does not insulate you.

What is the difference between the FTC TSR and the FCC TCPA for B2B calls?

The FTC's TSR has an explicit B2B exemption at §310.6(b)(7) that removes most TSR obligations for business-to-business calls. The FCC's TCPA has no equivalent B2B exemption in the statute. The TCPA's consent requirements for calls to cell phones apply whether the call is commercial B2B or consumer. Robocalls and auto-dialed texts to cell phones need TCPA consent even when the TSR would exempt them.

How often does the FTC update the Telemarketing Sales Rule and should I expect B2B rules to change?

The FTC has amended the TSR several times since 1995, with notable updates in 2003, 2010, 2015, and again in 2023-2024. The B2B exemption has stayed stable across those amendments. The 2023-2024 rulemaking focused on robocalls and credit card laundering, not B2B scope. Still, the FTC reviews its rules periodically, so any team relying on the exemption should track FTC rulemaking dockets for proposed changes.

Sources

1. FTC, Telemarketing Sales Rule (16 C.F.R. Part 310): TSR issued under 15 U.S.C. §§ 6101-6108; defines telemarketing; sets EBR at 18-month purchase window and 3-month inquiry window
2. FTC, Telemarketing Sales Rule: A Guide for Business: FTC guidance on exemptions, assist-and-facilitate provisions, and enforcement history including B2B framing as consumer buffer
3. FTC, Adjustments to Civil Penalty Amounts (Federal Register, 2024): TSR civil penalty maximum of $51,744 per violation as adjusted for inflation in 2024
4. FTC, 16 C.F.R. § 310.6(b)(7), TSR Exemptions: Section 310.6(b)(7) exempts telephone calls between a telemarketer and any business from most TSR provisions including DNC scrubbing, time restrictions, and disclosure requirements
5. FTC, National Do Not Call Registry: National DNC Registry is a consumer protection tool; business numbers are not covered by the Registry's restrictions
6. Florida Legislature, Florida Telephone Solicitation Act (§ 501.059, F.S.): Florida's state telemarketing law has distinct B2B coverage rules that do not mirror the federal TSR exemption
7. FTC, Complying with the Telemarketing Sales Rule: FTC compliance guide addresses which TSR provisions survive the B2B exemption, including fraud and deception prohibitions
8. FTC, Telemarketing Sales Rule Rulemaking (2023-2024 Amendments): 2023-2024 TSR amendments addressed robocalls and credit card laundering; B2B exemption at §310.6(b)(7) was retained unchanged